Georgia Department of Banking Revokes Reverse Mortgage Lenders License

The Georgia Department of Banking and Finance issued a notice of intent to revoke the license of Pacific Reverse Mortgage, Inc. d/b/a Financial Heritage on August 14, 2009 and has become final.   

According to the notice, Financial Heritage failed to disburse funds in accordance with a written commitment or agreement to make a mortgage loan and engaged in any transaction, practice, or course of business that is not in good faith or fair dealing, or which operated a fraud upon any person, in connection with the attempted or actual making of, purchase of, or sale of any mortgage loan.

Financial Heritage has twenty days to request a hearing to contest the decision to revoke the license.

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According to data from RM Insight, Financial Heritage has endorsed 150 HECMs YTD.  Financial Heritage did not respond to RMD’s request for comment at press time.     

Georgia Department of Banking and Finance Revokes the Mortgage Lender’s License of Pacific Reverse Mortgage, Inc. d/b/a Financial Heritage

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  • Is this another former industry leader going under? What is the story with Financial Heritage? Wasn't Pat Boone its spokesperson for several years?

  • I heard of another lender taking 23 days after closing to fund a loan. They had excuses and more excuses as to why it took nearly a month. Does anyone know for sure what the rules are? The title company told me that there were no set rules for the initial disbursement – that the lender had an obligation to ensure that all the T’s were crossed, etc. I can understand that. But what keep the lender from going from 23 days to 23 months? I DO know that, per contract (after closing), a lender has 5 business days from request for disbursement or a 10% penalty is imposed.

  • Funds are to be disbursed on 4th day after loan closing because of 3 day right to rescind. If borrower has chosen an initial draw, the funds should be disbursed on the 4th day after closing also. If borrower chooses monthly income, payments start the first business day of the next month. If borrower chooses line of credit, it takes approximately 30 days to set up LOC before borrower can order funds. If LOC, lender must disburse funds within 5 days of receiving the withdrawal order from borrower or borrower can charge 10% late fee and HUD can penalize lender.

    • pass2you,

      No doubt that is the earliest a bank will want to disburse funds, i.e., the 1st BUSINESS day after the 3 business day HECM rescission period has expired — but the latest date is a matter of state law. Penalties are a contractual matter based on the terms of the note and are generally as you have clearly stated.

  • There aren't enough facts in the article for anyone to come to a conclusion about the case. Sometimes state regulators overreact to a minor infraction in taking administrative action, and it's up to the courts to decide whether the action was appropriate.

  • Georgia is the most aggressive state in the country right now, and if you follow the trades, this is about the 4th or 5th company they have gone after in the last month or so.

    Y'all better mind your “p's and q's” if you are gonnna operate in Georgia!

  • Yes, Pat Boone was our spokesman. Talk about a great way to get people to pick up the phone. They closed down the business earlier this year. Too bad. The senior was well taken care of and it was a great place to work.

  • This is interesting. I had a loan given a “clear to close” by Financial Freedom (One West) back in June 2009. Client flew in for closing only to be told by them three days before closing that the “clear to close” was done in error. No apologies, no excuses. Anyone else ever exprience such an treatment?

  • This is interesting. I had a loan given a “clear to close” by a very well know lender back in June 2009. Client flew in for closing only to be told by them three days before closing that the “clear to close” was done in error. No apologies, no excuses. Anyone else ever exprience such treatment?

  • Seniors
    are flocking to this program for many good reasons – allows them to pay off
    mortgage and receive income for life without having to make monthly mortgage
    payments.

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